Almost everyone loves a company that pays strong dividends. Who doesn't like receiving a check every quarter for simply owning a stock--especially if that stock is paying you back 4%, 5% or even 10% of its share price in annual income each year? In a world where 10-year treasuries are yielding 3%-4% it seems hard to go wrong when buying a stock that's yielding significantly above the going rates on fixed-income assets. Unfortunately, the market rarely offers a free lunch.
While high-yield stocks may have a lot of near-term attractiveness, those same high-yields can often signal significant danger ahead. In some cases, it might mean that the company's dividend will stop growing or won't grow as fast as it used to. Worse yet, the company could cut its dividend, reduce the income you receive from owning the stock and drive down the value of the shares that you own.
5% plus yields might seem like an easy opportunity to boost the investment income you receive, but high-yield stocks can just as often be a trap waiting to snare unsuspecting investors. It's not always easy to tell the difference though.
This slideshow highlights 20 high-yield dividend stocks that are paying an unsustainably large percentage of their earnings in the form of a dividend. These companies are all paying out more than 100% of their earnings per share in the form of a dividend, a sign that the advertised high-yield probably won't last.
#1 - Brookfield Infrastructure Partners (NYSE:BIP)
- Dividend Yield
- 5.7%
- Annual Dividend Payout
- $1.72
- Earnings Per Share
- $0.04
- Payout Ratio
- 4,300.0%
- Consensus Rating
- Buy
- Consensus Price Target
- $42.50 (43.1% Upside)
About Brookfield Infrastructure Partners
Brookfield Infrastructure Partners L.P. owns and operates utilities, transport, midstream, and data businesses in North and South America, Europe, and the Asia Pacific. The company's Utilities segment operates approximately 2,900 km of electricity transmission lines; 4,200 km of natural gas pipelines; 8.1 million electricity and natural gas connections; and 0.6 million long-term contracted sub-metering services.
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#2 - Boston Properties (NYSE:BXP)
- Dividend Yield
- 5.72%
- Annual Dividend Payout
- $3.92
- Earnings Per Share
- $0.10
- Payout Ratio
- 3,920.0%
- Consensus Rating
- Hold
- Consensus Price Target
- $80.85 (19.5% Upside)
About Boston Properties
Boston Properties, Inc (NYSE: BXP) (BXP or the Company) is the largest publicly traded developer, owner, and manager of premier workplaces in the United States, concentrated in six dynamic gateway markets - Boston, Los Angeles, New York, San Francisco, Seattle, and Washington, DC. BXP has delivered places that power progress for our clients and communities for more than 50 years.
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- Dividend Yield
- 5.5%
- Annual Dividend Payout
- $1.90
- Earnings Per Share
- $0.08
- Payout Ratio
- 2,375.0%
- Consensus Rating
- Hold
- Consensus Price Target
- $37.48 (10.7% Upside)
About BP
BP p.l.c. provides carbon products and services. The company operates through Gas & Low Carbon Energy, Oil Production & Operations, and Customers & Products segments. It engages in the production of natural gas, and integrated gas and power; trading of gas; operation of onshore and offshore wind power, as well as hydrogen and carbon capture and storage facilities; trading and marketing of renewable and non-renewable power; and production of crude oil.
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- Dividend Yield
- 11.98%
- Annual Dividend Payout
- $2.75
- Earnings Per Share
- $0.12
- Payout Ratio
- 2,291.7%
- Consensus Rating
- Reduce
- Consensus Price Target
- $40.00 (74.3% Upside)
About BCE
BCE Inc, a communications company, provides wireless, wireline, Internet, and television (TV) services to residential, business, and wholesale customers in Canada. The company operates through two segments, Bell Communication and Technology Services, and Bell Media. The Bell Communication and Technology Services segment provides wireless products and services including mobile data and voice plans and devices; wireline products and services comprising data, including internet access, internet protocol television, cloud-based services, and business solutions, as well as voice, and other communication services and products; and satellite TV and connectivity services for residential, small and medium-sized business, government, and large enterprise customers.
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- Dividend Yield
- 3.84%
- Annual Dividend Payout
- $1.72
- Earnings Per Share
- $0.25
- Payout Ratio
- 688.0%
- Consensus Rating
- Hold
- Consensus Price Target
- $46.12 (3.5% Upside)
About UDR
UDR, Inc (NYSE: UDR), an S&P 500 company, is a leading multifamily real estate investment trust with a demonstrated performance history of delivering superior and dependable returns by successfully managing, buying, selling, developing and redeveloping attractive real estate communities in targeted U.S.
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#6 - Iron Mountain (NYSE:IRM)
- Dividend Yield
- 3.55%
- Annual Dividend Payout
- $3.14
- Earnings Per Share
- $0.61
- Payout Ratio
- 514.8%
- Consensus Rating
- Buy
- Consensus Price Target
- $125.67 (47.7% Upside)
About Iron Mountain
Iron Mountain Incorporated (NYSE: IRM) is a global leader in information management services. Founded in 1951 and trusted by more than 240,000 customers worldwide, Iron Mountain serves to protect and elevate the power of our customers' work. Through a range of offerings including digital transformation, data centers, secure records storage, information management, asset lifecycle management, secure destruction and art storage and logistics, Iron Mountain helps businesses bring light to their dark data, enabling customers to unlock value and intelligence from their stored digital and physical assets at speed and with security, while helping them meet their environmental goals.
- Dividend Yield
- 6.81%
- Annual Dividend Payout
- $0.40
- Earnings Per Share
- $0.08
- Payout Ratio
- 500.0%
- Consensus Rating
- Hold
- Consensus Price Target
- $7.25 (28.9% Upside)
About UWM
UWM Holdings Corporation engages in the residential mortgage lending business in the United States. The company offers mortgage loans through wholesale channel. It originates primarily conforming and government loans. UWM Holdings Corporation was founded in 1986 and is headquartered in Pontiac, Michigan.
#8 - Blue Owl Capital (NYSE:OWL)
- Dividend Yield
- 3.49%
- Annual Dividend Payout
- $0.72
- Earnings Per Share
- $0.17
- Payout Ratio
- 423.5%
- Consensus Rating
- Moderate Buy
- Consensus Price Target
- $26.33 (30.4% Upside)
About Blue Owl Capital
Blue Owl Capital Inc operates as an asset manager in the United States. The company offers permanent capital base solutions that enables it to offer holistic framework of capital solutions to middle market companies, large alternative asset managers, and corporate real estate owners and tenants. It also provides direct lending products that offer private credit products comprising diversified, technology, first lien, and opportunistic lending to middle-market companies; liquid credit; GP strategic capital products, which offers capital solutions, including GP minority stakes, GP debt financing, and professional sports minority stakes; and real estate products that focuses on acquiring triple net lease real estate by investment grade or creditworthy tenants.
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#9 - Healthpeak Properties (NYSE:DOC)
- Dividend Yield
- 6.05%
- Annual Dividend Payout
- $1.22
- Earnings Per Share
- $0.35
- Payout Ratio
- 348.6%
- Consensus Rating
- Moderate Buy
- Consensus Price Target
- $23.92 (18.5% Upside)
About Healthpeak Properties
Healthpeak Properties, Inc is a fully integrated real estate investment trust (REIT) and S&P 500 company. Healthpeak owns, operates, and develops high-quality real estate for healthcare discovery and delivery.
#10 - Realty Income (NYSE:O)
- Dividend Yield
- 5.69%
- Annual Dividend Payout
- $3.22
- Earnings Per Share
- $0.98
- Payout Ratio
- 328.6%
- Consensus Rating
- Hold
- Consensus Price Target
- $62.04 (9.6% Upside)
About Realty Income
Realty Income, The Monthly Dividend Company, is an S&P 500 company and member of the S&P 500 Dividend Aristocrats index. We invest in people and places to deliver dependable monthly dividends that increase over time. The company is structured as a real estate investment trust ("REIT"), and its monthly dividends are supported by the cash flow from over 15,450 real estate properties (including properties acquired in the Spirit merger in January 2024) primarily owned under long-term net lease agreements with commercial clients.
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#11 - Microchip Technology (NASDAQ:MCHP)
- Dividend Yield
- 3.57%
- Annual Dividend Payout
- $1.82
- Earnings Per Share
- $0.56
- Payout Ratio
- 325.0%
- Consensus Rating
- Moderate Buy
- Consensus Price Target
- $74.37 (52.7% Upside)
About Microchip Technology
Microchip Technology Incorporated engages in the development, manufacture, and sale of smart, connected, and secure embedded control solutions in the Americas, Europe, and Asia. The company offers general purpose 8-bit, 16-bit, and 32-bit mixed-signal microcontrollers; 32-bit embedded mixed-signal microprocessors; and specialized microcontrollers for automotive, industrial, computing, communications, lighting, power supplies, motor control, human machine interface, security, wired connectivity, and wireless connectivity applications.
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#12 - Healthcare Trust of America (NYSE:HTA)
- Dividend Yield
- 4.53%
- Annual Dividend Payout
- $1.33
- Earnings Per Share
- $0.42
- Payout Ratio
- 316.7%
- Consensus Rating
- N/A
About Healthcare Trust of America
Healthcare Trust of America, Inc (NYSE: HTA) is the largest dedicated owner and operator of MOBs in the United States, comprising approximately 25.1 million square feet of GLA, with $7.4 billion invested primarily in MOBs. HTA provides real estate infrastructure for the integrated delivery of healthcare services in highly-desirable locations.
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#13 - Smurfit Westrock (NYSE:SW)
- Dividend Yield
- 3.77%
- Annual Dividend Payout
- $1.72
- Earnings Per Share
- $0.55
- Payout Ratio
- 312.7%
- Consensus Rating
- Moderate Buy
- Consensus Price Target
- $60.70 (36.4% Upside)
About Smurfit Westrock
Smurfit Westrock Plc, together with its subsidiaries, manufactures, distributes, and sells containerboard, corrugated containers, and other paper-based packaging products in Ireland and internationally. The company produces containerboard that it converts into corrugated containers or sells to third parties, as well as produces other types of paper, such as consumer packaging board, sack paper, graphic paper, solid board and graphic board, and other paper-based packaging products, such as consumer packaging, solid board packaging, paper sacks, and other packaging products, including bag-in-box.
More about Smurfit Westrock
- Dividend Yield
- 5.92%
- Annual Dividend Payout
- $3.12
- Earnings Per Share
- $1.02
- Payout Ratio
- 305.9%
- Consensus Rating
- Moderate Buy
- Consensus Price Target
- $59.63 (16.7% Upside)
About Kinetik
Kinetik Holdings Inc operates as a midstream company in the Texas Delaware Basin. The company operates through two segments, Midstream Logistics and Pipeline Transportation. It provides gathering, transportation, compression, processing, stabilization, treating, storage, and transportation services for companies that produce natural gas, natural gas liquids, and crude oil; and water gathering and disposal services.
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#15 - Digital Realty Trust (NYSE:DLR)
- Dividend Yield
- 3.22%
- Annual Dividend Payout
- $4.88
- Earnings Per Share
- $1.62
- Payout Ratio
- 301.2%
- Consensus Rating
- Moderate Buy
- Consensus Price Target
- $180.32 (26.9% Upside)
About Digital Realty Trust
Digital Realty Trust, Inc operates as a real estate investment trust, which engages in the provision of data center, colocation and interconnection solutions. It serves the following industries: artificial intelligence (AI), networks, cloud, digital media, mobile, financial services, healthcare, and gaming.
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#16 - Alexandria Real Estate Equities (NYSE:ARE)
- Dividend Yield
- 5.49%
- Annual Dividend Payout
- $5.28
- Earnings Per Share
- $1.80
- Payout Ratio
- 293.3%
- Consensus Rating
- Hold
- Consensus Price Target
- $118.60 (24.1% Upside)
About Alexandria Real Estate Equities
Alexandria Real Estate Equities, Inc (NYSE: ARE), an S&P 500 company, is a best-in-class, mission-driven life science REIT making a positive and lasting impact on the world. As the pioneer of the life science real estate niche since our founding in 1994, Alexandria is the preeminent and longest-tenured owner, operator, and developer of collaborative life science, agtech, and advanced technology mega campuses in AAA innovation cluster locations, including Greater Boston, the San Francisco Bay Area, New York City, San Diego, Seattle, Maryland, and Research Triangle.
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#17 - Camden Property Trust (NYSE:CPT)
- Dividend Yield
- 3.39%
- Annual Dividend Payout
- $4.20
- Earnings Per Share
- $1.50
- Payout Ratio
- 280.0%
- Consensus Rating
- Hold
- Consensus Price Target
- $127.76 (4.6% Upside)
About Camden Property Trust
Camden Property Trust, an S&P 500 Company, is a real estate company primarily engaged in the ownership, management, development, redevelopment, acquisition, and construction of multifamily apartment communities. Camden owns and operates 172 properties containing 58,250 apartment homes across the United States.
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- Dividend Yield
- 3.26%
- Annual Dividend Payout
- $6.56
- Earnings Per Share
- $2.40
- Payout Ratio
- 273.3%
- Consensus Rating
- Moderate Buy
- Consensus Price Target
- $211.45 (3.1% Upside)
About AbbVie
AbbVie Inc discovers, develops, manufactures, and sells pharmaceuticals worldwide. The company offers Humira, an injection for autoimmune and intestinal Behçet's diseases, and pyoderma gangrenosum; Skyrizi to treat moderate to severe plaque psoriasis, psoriatic disease, and Crohn's disease; Rinvoq to treat rheumatoid and psoriatic arthritis, ankylosing spondylitis, atopic dermatitis, axial spondyloarthropathy, ulcerative colitis, and Crohn's disease; Imbruvica for the treatment of adult patients with blood cancers; Epkinly to treat lymphoma; Elahere to treat cancer; and Venclexta/Venclyxto to treat blood cancers.
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#19 - EnLink Midstream (NYSE:ENLC)
- Dividend Yield
- 3.75%
- Annual Dividend Payout
- $0.53
- Earnings Per Share
- $0.21
- Payout Ratio
- 252.4%
- Consensus Rating
- Hold
- Consensus Price Target
- $15.40 (5.8% Upside)
About EnLink Midstream
EnLink Midstream, LLC provides midstream energy services in the United States. The company operates through Permian, Louisiana, Oklahoma, North Texas, and Corporate segments. It is involved in gathering, compressing, treating, processing, transporting, storing, and selling natural gas; fractionating, transporting, storing, and selling natural gas liquids; and gathering, transporting, stabilizing, storing, trans-loading, and selling crude oil and condensate, as well as providing brine disposal services.
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#20 - HF Sinclair (NYSE:DINO)
- Dividend Yield
- 5.96%
- Annual Dividend Payout
- $2.00
- Earnings Per Share
- $0.82
- Payout Ratio
- 243.9%
- Consensus Rating
- Hold
- Consensus Price Target
- $47.00 (42.1% Upside)
About HF Sinclair
HF Sinclair Corporation operates as an independent energy company. The company produces and markets gasoline, diesel fuel, jet fuel, renewable diesel, specialty lubricant products, specialty chemicals, specialty and modified asphalt, and others. It owns and operates refineries located in Kansas, Oklahoma, New Mexico, Utah, Washington, and Wyoming; and markets its refined products principally in the Southwest United States and Rocky Mountains, Pacific Northwest, and in other neighboring Plains states.
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